Electric propulsion is a key element in building a more sustainable transport system. However, high prices remain a significant barrier to the widespread adoption of this technology across Europe. In this article, we look at the most interesting ways to optimise the cost of manufacturing batteries for electric cars.
The importance of efficient battery production in the automotive industry
It is estimated that the battery alone accounts for between 30% and 50% of the total cost of manufacturing an electric vehicle. This is because rare and expensive raw materials such as lithium, cobalt and nickel are used in the production of batteries for electric cars. The extraction and processing of these elements is quite expensive and complicated. In addition, the lithium-ion batteries most commonly used in vehicles require advanced manufacturing technology. As part of this process, it is necessary to precisely control the chemical composition and structure of the battery, which translates directly into inputs.
The scale of production is also an issue. Although electric cars continue to increase in number, batteries are not yet being produced in quantities that would allow significant cost reductions. Major investments are also required in modern machinery parks, laboratories and staff training. It is worth noting that car batteries still require continued investment in research and development to improve the performance, safety and durability of these solutions. Costs are necessarily passed on to consumers. The opportunity to improve this situation lies in the dynamic development of the market. Electric car sales reached almost 14 million in 2023, accounting for 18% of all cars sold. EVs are expected to increase their share of global car sales to 35% by 2030.
Optimisation of production processes
Various cost optimisation methods are used in the production processes of batteries for electric cars. These include the achievements of Industry 5.0, which are based on the latest technologies. For example, the automation of production lines and the use of artificial intelligence (AI) allow tasks to be performed faster and more precisely, and eliminate interruptions, reducing operating costs. In addition, AI can help optimise raw material and energy consumption. Plants using AI support can adapt more quickly to changing market conditions and customer needs, dynamically managing resources and adjusting production schedules. Real-time monitoring of production processes translates into the detection and elimination of defects at an early stage, leading not only to improved quality of final products and fewer complaints, but also to waste reduction. Predictive maintenance is also impactful, as it minimises downtime and increases the productivity and reliability of production lines.
However, these technologies are expensive to implement, so it is often only the largest companies that can afford them. An interesting and more affordable solution may be to use improvements in the construction and installation of the batteries. For example, a Knauf Industries battery pack made from modern foamed polypropylene (EPP) significantly simplifies and speeds up the assembly of cells and entire battery modules. The state-of-the-art manufacturing technologies we use guarantee optimised costs of producing a battery for an electric car and minimised material losses thanks to precise processes of foam and high quality control standards.
Selection and optimisation of materials
As an alternative to using expensive technological processes, alternative design and material solutions can be implemented. For example, cobalt, one of the most expensive elements used in lithium-ion batteries, can be replaced with cheaper metals such as iron used in lithium-iron-phosphate batteries or new organic materials. Another example can be, organic cathodes developed by researchers at the Massachusetts Institute of Technology which can offer similar performance and storage capacity to traditional batteries but are cheaper to produce.
Research on solid-state (DC) batteries also deserves attention. They offer higher energy density compared to traditional lithium-ion batteries. This means that they can store more energy in less volume, which translates into an increased range for electric vehicles. What is more, they have a longer lifespan and better stability of charge cycles, which means that they need to be replaced less often. Pilot production of this type of battery has already been started by Toyota, Nissan and Samsung SDI. Although they are currently costly to produce, these costs will fall by up to 30% over the next five years due to advances in technology and the scale of production.
Another interesting option is to replace the heavy metal components of the battery casing and anchoring with ultralight solutions made of foamed polypropylene (EPP). The material, which contains as much as 95% of air in its structure, combines low weight, high thermal insulation and resilience with outstanding impact resistance characteristic and is much cheaper to process than metal.
Increasing the energy efficiency of batteries
An important challenge is not only to reduce the cost of producing a battery for an electric car, but also to make maximum use of the energy available in the battery. The battery's operating efficiency is enhanced by battery management systems (BMS) that monitor its status in real time and optimise charging and discharging processes. The BMS watches over the voltage, current, temperature and state of charge of each battery cell among other things. This allows it to detect and respond to any anomalies, increasing the safety and performance of the car. For example, the system can regulate the charging current to prevent the battery from overheating and extend its life. It also controls the cooling and heating systems of the battery, and works with the power train or safety systems to optimise energy consumption throughout the vehicle.
Other systems that can influence energy efficiency include advanced autonomous systems and, of course, new materials and designs. The use of lightweight and durable materials, such as carbon fibre or EPP foamed plastic instead of metal sheet, hard plastic or bituminous components, reduces the weight of vehicles, resulting in better performance and greater range. The casing and foamed plastic insulating elements perfectly protect the sensitive electronics from shocks, even out the heat distribution in the individual battery cells and protect the battery from extreme thermal conditions.
Reducing the cost of manufacturing a battery for an electric car through localisation and scaling
The construction of gigafactories could have a key impact on reducing the unit manufacturing cost of batteries for electric cars. Thanks to economies of scale, fixed costs such as investment in infrastructure and technology are spread over a larger number of batteries produced. Gigafactories also have the opportunity to negotiate better terms for the purchase of raw materials thanks to larger orders. Production concentrated in a single giga production site furthermore allows for better logistics management and a reduction in transport costs, which also contributes to lower unit costs. Thanks to greater financial resources, large production facilities can invest more in research and development, leading to technological innovation. They can implement advanced, intelligent solutions and fully automated production lines, which increases productivity and reduces labour costs.
Another worthwhile strategy to reduce the cost of producing a battery for an electric car is to locate production facilities closer to raw material suppliers and car manufacturers. Reducing transport distances reduces the costs associated with transporting materials and finished products. Deliveries are made in a shorter timeframe, which increases supply chain efficiency and allows for better inventory management. In this way, it is possible to respond more flexibly to changing market needs and better adapt production to current requirements. Shorter supply chains also mean less risk of disruptions such as transport delays or problems with raw material availability. Manufacturers that have successfully applied this strategy include Tesla's Gigafactory in Nevada, BMW's production facilities in Spartanburg, South Carolina, and Toyota's plant in Texas.
All of these strategies have been and are still being developed in response to the increasing demands for environmental sustainability in the automotive industry. The rapid rise in the popularity of electric vehicles thanks to reduced prices is key to the continued development of the industry in line with environmental protection. The choice of specific solutions and strategies depends on the type and scale of the business. Contact us, and we will be happy to prepare a feasibility study and advise you on the best material and construction solutions for your business in the area of casings, fitting and insulation elements for electric car batteries made of innovative expanded polypropylene (EPP).